Signs are emerging that the corporate legal market is awakening after a long period of caution and contraction. The first two months of 2024 have seen lateral partner hiring, specifically involving corporate partners, increase in an impressive fashion among the Am Law 50 firms. According to a report by legal search firm Macrae, as detailed in a recent article on Above the Law, this uptick is most noticeable in four key markets: New York, the Bay Area, Washington, D.C., and London.
The resurgence of hiring activity, particularly in lateral movement, is a litmus test for the overall health of the corporate legal sphere. Positive changes in hiring trends can be seen as a precursor to an increase in big-ticket corporate deals. This is because firms tend to hire more partners, especially from competitor firms, when they expect an increase in the deal flow and feel a need to boost their capabilities.
The report by Macrae does not provide specific percentages or more detailed data, so it’s difficult to confirm any potential growth predictions or speculate about future trends in the corporate legal space. However, the observable increased recruitment activity creates an atmosphere of cautious optimism as legal communities adapt to an evolving marketplace.
These hiring increases, which seem significant given the recent market stagnation, do not, however, paint the whole picture. Other data and on-the-ground realities must be analyzed to see the full scope of the recovery. For example, it would be pertinent to determine whether there is an overall net increase in positions or whether lateral moves are merely causing a reshuffling within the industry.
Only time will soften some of the harsh edges of this uncertainty. Moving forward, legal professionals and firms will need to keep a close eye on hiring trends and market developments. Nevertheless, these early signs of movement may very well prove to be the harbinger of a new, invigorated chapter in global corporate law.